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Lesson Plan 35 Planning and Decisi 5A5628811B98A
Lesson Plan 35 Planning and Decisi 5A5628811B98A
SCOPE
This lesson discusses planning and decision making as very important concepts for a
manager. These principles combine to form perhaps the most important function of
the principles of management. Most experts believe managers cannot be effective
unless they plan. A large part of planning is decision making. Since planning was
discussed in the last lesson, much of this lesson will consider decision making.
Managers must not shy away from making the decisions that impact themselves, their
employees, and their organization. Some decisions are simple and some require
much effort to effect the organization in positive ways and achieve organizational
objectives.
OBJECTIVES
1. Define planning in an organizational setting
2. Describe the steps in the planning process
3. Explain the importance of strategic planning to an organization
4. Identify the two components in the process of decision making
5. Describe the context factors associated with decision making
6. Explain the decision support process
DURATION
75 minutes
SPECIAL NOTES
Much of the Decision-Making information was taken from the notes of Dr. Lynda
Kilbourne, professor of Organization Change, Strategy, and Management, Xavier
University, Ohio. Dr. Kilbourne rfeceived her Ph.D. from the University of Texas, at
Austin, 1990.
INTRODUCTION
State your topic and introduce yourself.
ATTENTION
You are probably asking, Didnt we just cover planning in the last module? Yes, we
did, but most experts believe that planning is the most important function of a
manager. Careful, deliberate planning can pave the way for success for any manager,
and because of that, planning is worthy of studying in more detail.
MOTIVATION:
This lesson should be one of the most important you have in the Corporate Learning
Course. As a manager, or soon to be a manager, practicing the ideas we will discuss
this hour can definitely help you be more effective.
OVERVIEW:
Well begin by discussing planning. In some ways this is a continuation of the
Management module, but we will go into more detail. We will define planning and
talk about important steps necessary to effective planning. This sets the stage for a
discussion about decision making. Decision making is crucial to effective managing.
Well cover some suggested steps toward good decision making and look at this topic
a little closer.
LESSON:
Planning determines how an organization can get to where it wants to go. Planning
determines what an organization will do to accomplish its objectives. The
fundamental purpose of planning is to achieve your objectives. In order to do that
planners must keep in mind the organizations mission, environment, resources, and
values. All of these play a part in successful planning.
An important point about planning is that it helps managers think beyond the daily
activities that surround them. It helps them plan for the future and be ready for
challenges.
Planning Process
There are several models that could be used for planning, but they are all very similar.
This one should work fine as an example of effective planning.
The planning process contains six steps:
1. Stating organizational objectives this is a necessary beginning point of successful
planning and should remain a focal point throughout the planning process.
2. Listing alternatives for reaching objectives managers should list many different
ways to possibly reaching the objectives.
3. Developing assumptions about each alternative managers should spend time
thinking about what might happen depending on which alternative is chosen.
Managers need to use their knowledge and experience to make solid assumptions.
4. Choose the best alternative evaluate the assumptions and choose the best
alternative.
5. Develop plans to pursue the chosen alternative manager begins to develop
plans.
6. Put the plans into action this is where the organization benefits from all the
planning.
DISCUSSION QUESTION:
Ask for examples of when students used some kind of process in planning an activity.
Types of Planning
Strategic
Tactical
Contingency
DISCUSSION QUESTION:
When we think of the different types of planning what comes to mind? Someone
should say strategic planning, and this is where you want to start.
Strategic planning is a very popular concept that has been around for years.
Certainly, it is safe to say that most if not all companies and organizations spend time
on their strategic plans. Strategic planning is defined as long-range planning that
focuses on the entire organization. Strategic planning involves managers at the
highest levels. Executive directors and presidents, leaders of the organization, are
involved. They must have a part in where the organization is headed and how it will
get there. The leaders are asking what must be done in the long run to achieve the
organizational goals and objectives. Three years or longer is usually considered long
range; however, many organizations seem to think five years is the right amount of
time for planning long term. The nature of strategic planning is to develop strategies
for achieving your objectives. Strategies must of course be consistent with the purpose
and mission of the organization.
Tactical planning is characterized as short-term planning. This type of planning is
usually confined to one year or less. It is more concerned with current operations, and
as such, usually involves mid level managers instead of the highest level managers.
Tactical planners are thinking about tomorrow and next week or next month and
planning is much more detailed than strategic. Strategic is more broad.
Contingency planning is worth a brief mention. This is a term that is frequently
used within organizations. It simply means what does an organization do when
something unexpected happens or when something needs changing. No matter how
effective a manager is, circumstances can change that will necessitate plans to
change. This is where contingency plans can be very helpful. Contingency plans may
cause a manager to go back to the original planning and look at other alternatives.
Circumstances may dictate that a particular strategy didnt work and now a different
plan must be used. Contingency planning is kind of the what if way of thinking.
Contingency planning should continue to be more important with organizations as the
world and businesses become more complicated.
DISCUSSION QUESTION:
Ask for examples of some successful strategic, tactical or contingency plans. Have
students draw from either personal or professional experiences.
DECISION MAKING
In the past, decision making was thought of as a management function all by itself,
but now almost everyone places it with planning. Regardless of how you view it,
decision making is a critical part of being an effective manager. Managers make
dozens of decisions everyday. Many are quite small but some are huge. Your success
as a manager depends on how well you make decisions.
A decision is a choice between alternatives and decision making is the process of
choosing one alternative over the others. Making good decisions should be a process.
It is a process of identifying problems and resolving them, or of identifying
opportunities and taking advantage of them. The process is made up of two
components:
Judgment a process of evaluating alternatives
Choice a process of selecting a specific alternative to implement
Judgment can occur without being followed by choice. However, some level of
judgment will always precede choice.
Characteristics of Human Information Processors
Selective perception - Because human beings can handle only limited amounts of
stimuli simultaneously, we all choose what we will attend to and what we will ignore.
The key to successful organizational decision making is to select the relevant
information and ignore irrelevant information.
Framing - This refers to how a decision is oriented and organized. A typical dichotomy
of framing is for a choice to be represented as a problem to solve versus an
opportunity to take advantage of. Another is positive versus negative. Framing is
important because different outcomes result depending upon how the decision is
framed, even when the decision maker has the same information.
Escalation of commitment to a failing course of action - Failure to ignore sunk costs
(investments that are already gone and cannot be recovered) and see that the original
choice is not achieving--and will not achievethe initial objectives. The sunk cost
doesnt have to be financial. It can be just personal effort and self-esteem that
someone has invested in a course of action. To avoid admitting error or defeat, or
humiliation, the decision maker continues to invest more and more in the original
choice.
Risk propensity - The orientation of the decision maker to either seek risk or avoid it.
While each of us has an individual risk propensity, all of us are typically risk seeking
for gains and risk averse for losses. This means that if something has been working,
we will continue to do more of the same even though the situation has changed.
Coupled with selective perception, framing, and escalation of commitment, this
phenomenon of choice can have dire consequences of overly conservative behavior to
the point that we fail to be creative.
Hindsight bias - this is the inability of a decision maker to remember correctly the
circumstances that existed prior to implementing a choice once action has been taken.
You can recognize this behavior when someone says, I KNEW that was going to
happen! This is a problem because we fail to learn from our decisions.
DISCUSSION QUESTION:
Ask for examples of first, good decisions, but then also ask for examples of some
decisions that didnt work well. Ask whether the students employed a system for
making the decision. Use this as a review of the process. A discussion could ensue
about changing the five steps from above. That is certainly permissible. Many models
have six steps and many are slightly altered versions of this. Use whatever works for
you and your class.
Political
Assumes different perspectives/preferences, exists for criteria, relevant
information, alternatives, and outcomes, and that more than one person will be
involved in the choice. Assumes decision makers build coalitions to support their own
preferred outcome.
Note: this is a useful approach where there are multiple options to choose
between, where none is clearly better than the others, and where building consensus
through negotiation can improve move the group to choice. While labeling a process
as being political is typically considered derogatory, this approach can be positive.
Every organization has political behavior occurring. To insure the politics remain
positive, leaders should make sure information flows to all parties.
Social
SUMMARY
This lesson took a closer look at one of the four management principles, planning and
at a very important part of planning, decision making. Review the steps of both with
the class.
EXERCISE:
WINTER SURVIVAL EXERCISE
Introduction
Divide class into two or three groups of 5-7 people. Select an observer for each
group.
This activity is a decision-making exercise. The observers should pay attention to the
interaction between members and how decisions are made. Also, the observers
should take note of how people respond when their ideas are accepted or rejected.
Notice who is dominant and who isnt; who is active and who isnt; and who influences
the group and who doesnt. The observers should actually take notes so they can
discuss what they saw.
The Situation
You have just crash-landed in the woods of Northern Minnesota and Southern
Manitoba. It is 11:30 a.m. in mid-January. The small plane in which you were
traveling has been completely destroyed except for the frame. The pilot and copilot
have been killed, but no one else is seriously injured.
The crash came suddenly before the pilot had time to radio for help or inform anyone
of your position. Since your pilot was trying to avoid a storm you know the plane was
considerably off course. The pilot announced shortly before the crash that you were
eighty miles northwest of a small town that is the nearest known habitation.
You are in a wilderness area made up of thick woods broken by many lakes and
rivers. The last weather report indicated that the temperature would reach minus 25
degrees in the daytime and minus 40 at night. You are dressed in winter clothing
appropriate for city wear suits, pantsuits, street shoes, and overcoats. No ones cell
phones or computers work.
While escaping from the plane your group salvaged the 15 items listed below. Your
task is to rank these items according to their importance to your survival. The group
has agreed to stick together.
___ knife
2.
3.
4.
Cigarette lighter without fluid. The gravest danger facing the group is
exposure to the cold. The greatest need is for a source of warmth and
second is for signaling. Building a fire should be the first order of business.
Without matches they need a spark. Even without fluid the cigarette lighter
can be used to produce sparks to start a fire. A fire will produce warmth
and signal search parties.
Ball of steel wool. Something has to be used to catch the sparks made by
the lighter. Steel wool is the best substance to catch and support a flame,
even if it is a little bit wet.
Extra shirt and pants for each survivor. Clothes are probably the most
versatile items in a situation like this. Besides warmth, they can also provide
shelter, signaling, bedding, bandages, string when unraveled, and tinder for
fires.
Family-size Hershey bar; one per person. To gather wood for the fire and to
set up signals, energy is needed. The Hershey bars would supply energy for
some time.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Can of shortening. This item has several uses. The lid can be mirror-like,
and shining it with steel wool will make it even more reflective. Reflecting
the lid off the sun may be the best signal for search planes. Shortening can
be rubbed on the body to protect skin from the cold. Small amounts could
be eaten if desperate. Melted shortening when soaked in cloth could make
a candle. The can is useful for melting snow for water and as a cup.
Flashlight. During the night the flashlight is the best signaling device. The
value of the flashlight lies in the fact that if the fire burns low or goes out,
the flashlight can be immediately turned on the movement of a plane.
Piece of rope. The rope is another versatile piece of equipment. It could be
used for pulling dead limbs from trees. The rope could be cut and used for
making shelters. It can be burned. When frayed it can be used to tinder a
fire.
Newspaper; one per person. Could be used for starting a fire. It could be
used as insulation when rolled up and placed under clothing. It could be
rolled up and used as a cone for yelling.
.45-caliber pistol. It can be a sound signaling device. The butt of the pistol
could be a hammer. Powder from the shells could be used for building the
fire. At night, the blast from a gun can be seen as well as heard. It could
be used for hunting, but it would take a skilled marksman to kill an animal.
Knife. It is versatile but not that important is this setting. It could be used
for cutting rope and for cutting pieces of wood for the fire.
Compress kit with gauze. You can wrap gauze around exposed areas of the
body for insulation. The gauze could be a candlewick. It could be tinder for
the fire. It is ranked low because of the small supply.
Ski poles. They arent very important, but they can be a flag pole for
signaling. They can help someone walking through snow looking for wood.
You could use them for testing the thickness of ice and for a pole for a
shelter.
Quart of 85-proof whiskey. Only use is for helping fuel the fire. You could
soak some clothing with whiskey for a torch. Whiskey takes on the
temperature it is exposed to, and therefore, a drink at minus thirty degrees
would freeze a persons esophagus and stomach. You could use the bottle
for storing water.
Sectional air map made of plastic. A dangerous item because it would
encourage people to walk to town-thereby condemning them to almost
certain death.
Compass. Also a dangerous item that would encourage people to walk to
the nearest town. Only use would be the glass might be a reflector.
30 feet of rope
15 compass
12 two ski poles
10 knife
can of shortening